On 15 September 2016, Yestar Healthcare Holdings Company Limited issued the USD 200 million 6.9% senior notes with a maturity date of 15 September 2021 (the ``Notes''). In 2020, the Group had a difficult year due to outbreak of the Covid-19 pandemic. During the first half of 2020, most hospital resources have been reserved to combat Covid-19, which caused a plunge in demand of the IVD equipment installment reagent and related consumables. As a result, the Group recorded decreased revenue and profit in 2020 compared to 2019. Over the last few months, the Company and various of its creditors (including certain holders of the Notes (the ``Noteholders'')) and respective advisers, have been in constructive dialogue and have worked expeditiously to agree on a restructuring of the indebtedness of the Group. In order to facilitate a full and open communication with all Noteholders and address the Group's current liquidity issue in an efficient and fair way, the company is hereby announcing a proposed restructuring plan in respect of the Notes (the ``Proposed Restructuring''). The company considers that it is in the interest of all its stakeholders to complete the Proposed Restructuring as soon as practicable. The company believes that doing so will allow the Group to improve its capital structure and return its focus to daily operation with a view to improving cashflows and liquidity and enhancing stakeholder value. The company strongly encourages the Noteholders to accede to the RSA and support the Proposed Restructuring. Under the terms of the Proposed Restructuring, the sum of the Cash Redemption and the principal amount of the New Notes (as defined in the Term Sheet) to be paid or issued on the Restructuring Effective Date will be equal to the principal amount of the Notes plus accrued but unpaid interest. In addition, the Company proposed certain improved commercial terms under the New Notes as compared to the terms of the existing Notes, including a higher interest rate and required amortization payments. Noteholders should refer to the details of the Proposed Restructuring in the RSA. The Proposed Restructuring is expected to be implemented through a scheme of arrangement in the Cayman Islands (the ``Cayman Scheme''), together with any ancillary recognition or enforcement proceedings in the relevant jurisdictions for the purposes of obtaining cross border relief where applicable and necessary in the discretion of the company. A scheme of arrangement is a statutory mechanism which allows the Cayman Islands' court to sanction a ``compromise or arrangement'' which has been voted upon by the relevant classes of creditors and approved by the required majorities. It is not an insolvency procedure. In order to support the implementation of the Proposed Restructuring, the Company and the Subsidiary Guarantors entered into the restructuring support agreement on 20 July 2021 and each Noteholder is invited to accede to the RSA prior to the relevant deadlines for receiving a cash Consent Fee and/or a cash Early-Bird Fee. The Company expects to commence the process of implementing the Proposed Restructuring on terms set forth in the RSA and the Term Sheet as soon as possible. The Proposed Restructuring when completed will provide the Company and the Group with a sustainable capital structure to deliver long-term value for all of its stakeholders.